I agree that once your ex-spouse took the funds out of the 401k as a distribution (and more than 60 days have elapsed) the opportunity to roll the funds over to a IRA of any kind by anyone was lost.
If your ex-spouse is on a payment plan to pay the funds to you hopefully the full amount of potential QDRO distribution will now be paid to you on a cash basis. He should derive no benefit from his behavior, the taxes he incurred should be his burden to bear entirely. Since he initially ignored the provisions of the QDRO hopefully the remediation plan includes the additional payment of ongoing interest by the ex-spouse on the outstanding unpaid balance of the QDRO settlement. Furthermore an astute attorney might also insist that the remediation plan include provisions for the ex-spouse to pay for life insurance coverage covering the unpaid balance of the QDRO distribution with you as the owner of that policy. There is no guarantee whatsoever there will be any estate to recover any unpaid balance from in the event of his passing, he could transfer all assets to someone else. Your rights granted by the court need to be protected.
If your ex-spouse is on a payment plan to pay the funds to you hopefully the full amount of potential QDRO distribution will now be paid to you on a cash basis. He should derive no benefit from his behavior, the taxes he incurred should be his burden to bear entirely. Since he initially ignored the provisions of the QDRO hopefully the remediation plan includes the additional payment of ongoing interest by the ex-spouse on the outstanding unpaid balance of the QDRO settlement. Furthermore an astute attorney might also insist that the remediation plan include provisions for the ex-spouse to pay for life insurance coverage covering the unpaid balance of the QDRO distribution with you as the owner of that policy. There is no guarantee whatsoever there will be any estate to recover any unpaid balance from in the event of his passing, he could transfer all assets to someone else. Your rights granted by the court need to be protected.
Statistics: Posted by 123 — Thu May 23, 2024 11:09 pm — Replies 3 — Views 180